Italian NPL Update 2018-05

Intrum Lindorff and Intesa Sanpaolo have agreed to establish a servicer of non-performing loans (NPLs) in Italy by merging Intesa Sanpaolo’s NPL recovery operations and all of Intrum’s current Italian operations. The new venture will start with 40 Bn Asset Under Management. The deal includes also that Intrum together with CarVal Investors, will acquire a 51% participation of a NPL portfolio with a Gross Book Value (GBV) of EUR 10.8 billion to be deconsolidated from Intesa Sanpaolo (news in Italian)

unicredit_shu_551825293_1600x900

Unicredit is launching project Torino a 1Bn Unsecured portfolio sale and is expected to arrange a new tranche of former project Sandokan with a secured portfolio up to 3Bn that shoud be acquired by the same investors Pimco, Gwm e Finance Roma.

KRUK has signed a contract to acquire 51% stake in Agecredit srl based in Cesena, operating on the Italian third-party debt collection market. The transaction will strengthen the development of the key segment of Group’s operations – third-party debt collection business. Ultimately, within a few months, KRUK will own 100% of the company.

Anacap and Pimco acquired a majority stake in Phoenix Asset Management (Pam) an Italian sprecial servicing company founded by Steve Lennon, Paolo Lo Giudice e Roberto Tavani that will remain as manager and minority shareholders.

Banca IFIS closed 3 NPL deals in the first quarter 2018

  • a twelve-month agreement for the purchase of the annual production of unsecured, consumer, non-performing loans (credit cards and personal loans) of one of the leading Italian consumer credit companies, by forward flow (transfer of loans on a quarterly basis) -the first transfer of these loans was carried out for a value of approximately 35 million Euro (nominal value), corresponding to over 4,500 positions
  • a financing transaction for a portfolio of mainly secured non-performing loans, originated by a leading Italian banking group and acquired by a company affiliated to Cerberus Capital Management.
  • the sale of some consumer-type portfolios having a nominal value of approximately 40 million Euro. The transaction was finalised with an international distressed investor, active in the secondary market.

Carige approved the Non PerformingExposure strategy for the 2018-2020 period (the “NPE Strategy”) which includes the disposal of an additional bad loan portfolio for a gross amount of up to EUR 1 bn, on top of the already-planned disposal of Unlikely-to-Pay exposures (UTPs) for a gross amount of approximately EUR 500 mln, having assessed the accounting treatment of the effects arising from the First Time Adoption (FTA) of IFRS 9.
To give effect to the NPE Strategy, a portfolio of up to EUR 1 bn will be selected out of a total bad loan portfolio of approximately EUR 1.7 bn as at 31 December 2017, which will be disposed of on the market, with senior notes backed by the Italian Government guarantee (GACS).

Creval has signed an agreement with Algebris Investments for the sale of a portfolio consisting of secured non-performing loans (mainly classified as unlike to pay) for a gross book value (“GBV”) of over EUR 245 million, at a price higher than 43% of GBV.
This transaction allows the realization of approximately 50% of the targets for the sale of nonperforming loan (“NPL”) set for the so-called “Project Gimli” for 2018.

Arrow Global acquired 2 Italian firms,  Europa Investimenti, a manager of Italian distressed debt investments, for an equity value of €62m (£54.7m) and 100 percent of Parr Credit, a Rome-based servicer of Italian non-performing loans for an equity value of €20m.

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About Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,
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